Riot Games, a unit of Tencent (OTC:TCEHY), recently announced that it had acquired Hypixel Studios for an undisclosed sum. Hypixel, which got its start developing modifications and operating popular gameplay servers for Mojang and Microsoft‘s (NASDAQ:MSFT) hit game Minecraft, is set to release its first stand-alone game next year.
Riot Games was an early backer of Hypixel, so the team-up is a natural fit in many ways, and the acquisition marks yet another step in Riot’s push to expand its content offerings and development capacities. With Hypixel having yet to release a single title, it’s an interesting move from Riot and Tencent, and one that’s worth a closer look.
Riot wants to challenge Minecraft
Riot Games is best known for its hit title League of Legends (LoL), an action strategy game released in 2009 that has maintained stellar levels of engagement. The developer is now aiming to build strong positions in other video game genres, and the acquisition of Hypixel signals that it views having its own entry in the block game genre popularized by Minecraft as an important priority.
Minecraft is a game developed by Mojang that was released in 2009. It has gone on to become one of the most successful entertainment products of all time. Microsoft purchased Mojang in 2014 for $2.5 billion, a smart move even though the size of the deal initially drew